Maharashtra Government Constitutes Committee to Develop Venture Capital Fund for Textile Industry
The Maharashtra state government has taken a significant step towards bolstering its textile sector by forming a dedicated committee to frame proposals for establishing a venture capital fund. This initiative is closely linked to the state's ambitious objective of achieving a $1-trillion economy and aligns with the implementation of its comprehensive textile policy.
Committee Composition and Leadership
According to a government resolution (GR) issued on Monday, the committee will be chaired by the state textile minister, ensuring high-level oversight. The assistant commissioner (technical) of the textile department from Nagpur will serve as the member-secretary, providing technical expertise. Other members include secretary-level officials from key departments such as textile, skill development and entrepreneurship, finance, and planning, among others, to ensure a holistic approach.
Notably, Kanishk Maheshwary, managing director of Primus Partners Pvt Ltd, is the sole representative from the private sector, bringing valuable industry insights to the table. This diverse composition aims to blend governmental and private perspectives for effective fund design.
Objectives and Tasks of the Panel
The panel has been entrusted with a critical mandate: to study the structure, size, and operational framework of a dedicated venture capital fund. This fund is intended to support textile enterprises, with a particular focus on startups and micro, small, and medium units (MSMEs). The move is part of broader policy measures aimed at strengthening manufacturing capabilities, boosting exports, and generating employment opportunities across the state.
The textile sector plays a pivotal role in Maharashtra's industrial growth and employment landscape, and targeted risk capital is deemed essential to promote innovation, modernisation, and value addition. These efforts are expected to contribute to long-term economic expansion, aligning with the state's vision of becoming a $1-trillion economy.
Strategic Examination and Recommendations
To maximise impact, the committee will undertake a thorough examination of best practices in venture capital funding and assess the funding needs across the entire textile value chain. It will also suggest ways to leverage private investment, engage with financial institutions, and utilise central government schemes effectively.
Officials have indicated that the panel will recommend necessary safeguards, incentives, and timelines to ensure the effective utilisation of funds. Once its work is complete, the committee will submit a detailed report to the government for further action, paving the way for the fund's establishment and implementation.
Context and Broader Goals
This initiative is set against the backdrop of Maharashtra's 2023-28 textile policy, which has ambitious targets of attracting investments worth Rs 25,000 crore and generating 5 lakh jobs. By fostering a supportive financial ecosystem through the proposed venture capital fund, the state aims to enhance competitiveness, drive innovation, and secure sustainable growth in the textile industry, thereby reinforcing its position as a key economic driver in India.
